HomeMy WebLinkAbout2018-01-23 - AGENDA REPORTS - SCV ECON DEV CORP (2)O
Agenda Item: 7
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: 41
DATE: January 23, 2018
SUBJECT: CONTRACT EXTENSION WITH THE SANTA CLARITA VALLEY
ECONOMIC DEVELOPMENT CORPORATION
DEPARTMENT: Community Development
PRESENTER: Jason Crawford
RECOMMENDED ACTION
City Council:
1. Authorize expenditures for the renewal of support for the Santa Clarita Valley Economic
Development Corporation for three consecutive Fiscal Years (FY 2018-19, FY 2019-20, and
FY 2020-21), in the amount of $200,000 annually.
2. Authorize the City Manager or his designee to negotiate and execute a three-year renewal
agreement with the Santa Clarita Valley Economic Development Corporation, subject to City
Attorney approval.
BACKGROUND
On November 10, 2009, the City Council approved an agreement between the City of Santa
Clarita (City) and the Santa Clarita Valley Economic Development Corporation (SCVEDC) in
the amount of $200,000 for initial start-up costs and the creation of a local economic
development corporation. Subsequently, the City Council has consistently approved additional
annual investments in the amount of $200,000. Beginning in 2013, the City Council authorized
three-year commitments to provide the SCVEDC with financial certainty in order to strategically
plan for the future.
Since its formation, the SCVEDC has expanded from its roots in business attraction to include
business retention and assistance, and support for entrepreneurship and the startup community.
The SCVEDC focuses on target industries of aerospace/defense, digital media/entertainment,
information technology, bioscience/medical device, and advanced manufacturing.
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In 2017, the SCVEDC provided assistance to over 100 companies, and through business
attraction and expansion efforts, attracted or retained more than 30 businesses and 2,000 jobs in
the Santa Clarita Valley (SCV). The SCVEDC supported a number of expansions of SCV
businesses, including Lief Organics, ADCO Products, and Accurate Freight. All target industries
were represented, including: the attraction of aerospace companies Nasmyth and AS Aerospace;
the expansion of Santa Clarita Studios; the expansion of Set Point Medical; and the retention of
Boston Scientific. The results of the previous years' efforts were evident, with the construction
of the new headquarters for Logix Federal Credit Union underway and the expansion of
technology company Scorpion, which moved into its new headquarters in November.
The SCVEDC has identified the following among its goals for 2018 business attraction and
retention and expansion efforts:
Attract businesses in target industry clusters to the nearly 500,000 square feet of new
industrial development currently underway in the SCV and develop prospects for future
planned development
Provide business assistance to at least 75 SCV companies, with an emphasis on
companies in target industry clusters
• Continue fostering growth in the SCV startup and entrepreneurial community
The SCVEDC's efforts are intended to complement, and not compete with, the existing economic
development efforts and investment of the City, Los Angeles County, the Chamber of
Commerce, the Valley Industry Association, and College of the Canyons, as well as those of
commercial real estate professionals involved in the economic development of the Santa Clarita
Valley.
Any future investment, beyond what is approved by the City Council through this Agenda Item,
would be determined by the City Council and would be contingent upon the measurable
successes of the SCVEDC and future City priorities.
ALTERNATIVE ACTION
Other actions as determined by City Council.
FISCAL IMPACT
$200,000 will be appropriated to Expenditure Account Number 11301-5171.005 for three
consecutive Fiscal Years (FY 2018-19, FY 2019-20, and FY 2020-21), for a total investment
amount of $600,000, and will be paid upon successful annual updates to the City Council,
pursuant to the terms of the Agreement.
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